Karbon Card, a start-up providing corporate cards and an emerging neobank for new era start-ups and small and medium enterprises, has raised Rs 55 crore in a debt financing round from Northern Arc Capital, UC Inclusive Credit (UCIC) and Oxyzo Financial Services.
Bengaluru-based UCIC, incubated by Unitus Capital, is an impact-focused non-bank finance company registered with the Reserve Bank of India, while Oxyzo is the lending arm of OfBusiness and is backed by Softbank.
Meanwhile, Karbon would use the funds to empower and enable start-ups and SMEs with corporate credit cards that they can use as flexible growth capital. The Bengaluru-based start-up currently provides corporate cards and expense management solutions to over 2,000 start-ups and SMEs.
This is the first-ever debt round for Karbon, which has so far raised approximately $32 million in equity from global and marquee investors such as Ycombinator, Ramp and Olive Tree Capital, among others.
Founded in 2019 by Kartik Jain, Pei-fu Hsieh, Amit Jangir, and Sunil Kumar, Karbon is an enterprise payment platform and upcoming neobank for small businesses, enterprises, and start-ups. It provides Visa-issued corporate cards (both virtual and physical) and allows the finance team to easily control and track company-wide expenses.
Karbon offers start-ups four key benefits including credit of up to Rs 25 lakh in cash with no personal collateral or fixed deposit, seamless payment transactions through corporate cards to its customers, rewards specific to the requirements of start-ups such as AWS credits at 12% off or SaaS products. Finally, it allows to offer expense management via WhatsApp in a very intuitive way.
Karbon intends to help start-ups and SMEs for which the banking experience is very poor because banks do not consider them large enough to be served. It recently launched a banking product for